Colorado

No Colorado estate tax filing required for deaths after Dec 31, 2004

“Under current law, no Colorado estate tax filing is required for estates of individuals who die after December 31, 2004.”

Note: Legislature page; cites Article 23.5, Title 39, C.R.S. (the CRS 39-23.5 pickup statute).

Colorado flat income tax rate is 4.4% for TY2025 (TABOR reduction expired after TY2024)

“Colorado taxable income means federal taxable income as determined pursuant to the provisions of the internal revenue code, subject to the modifications set forth in this section. There is hereby imposed upon the Colorado taxable income of every resident a tax at the rate of four and forty-hundredths percent.”

Note: C.R.S. §39-22-104(1.7) imposes a 4.4% Colorado income tax rate for TY2025. The TABOR ratchet mechanism reduced the rate to 4.25% for TY2024 (a surplus year); TY2025 is back at 4.4% absent a new TABOR reduction. Colorado begins with federal taxable income, so the MFJ federal standard deduction shelters gains automatically.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

CO exempts CO-issued bonds; out-of-state muni bond interest included in CO income per CRS §39-22-104(3)(b)

“There shall be added to the federal taxable income: ... An amount equal to the interest income which is excluded from gross income for federal income tax purposes pursuant to section 103 (a) of the internal revenue code less amortization of premium on obligations of any state or any political subdivision thereof, other than interest income on obligations of the state of Colorado or any political subdivision thereof which are issued on or after May 1, 1980.”

Note: CRS §39-22-104(3)(b) adds back muni interest excluded from federal gross income under IRC §103(a), except interest on obligations of the state of Colorado or its political subdivisions. Out-of-state muni interest is taxed; Colorado bonds are exempt. Quote verbatim from the live CRS 2024 Title 39 PDF (fetched via curl).

CO exempts CO-issued bonds; out-of-state muni bond interest included in CO income per CRS §39-22-104(3)(b)

“There shall be added to the federal taxable income: ... An amount equal to the interest income which is excluded from gross income for federal income tax purposes pursuant to section 103 (a) of the internal revenue code less amortization of premium on obligations of any state or any political subdivision thereof, other than interest income on obligations of the state of Colorado or any political subdivision thereof which are issued on or after May 1, 1980.”

Note: CRS §39-22-104(3)(b) adds back muni interest excluded from federal gross income under IRC §103(a), except interest on obligations of the state of Colorado or its political subdivisions. Out-of-state muni interest is taxed; Colorado bonds are exempt. Quote verbatim from the live CRS 2024 Title 39 PDF (fetched via curl).

Colorado partially conforms to IRC §1400Z-2 QOZ gain deferral and exclusion

“For tax years commencing on or after January 1, 2027, a taxpayer shall add to federal taxable income any amount excluded or deferred under section 1400Z-2 of the internal revenue code with respect to a qualified opportunity fund that is not a Colorado qualified opportunity fund.”

Note: HB26-1289 (2026) added a Colorado addback for QOF investments in non-Colorado opportunity zones, effective TY2027. For TY2025, Colorado conforms to all federal QOZ treatment. From TY2027 onward, only in-state CO QOF investments retain the federal deferral/exclusion at the state level.

Colorado rolling IRC conformity incorporates IRC §1202 QSBS gain exclusion

“Colorado taxable income means federal taxable income as determined pursuant to the provisions of the internal revenue code, subject to the modifications set forth in this section.”

Note: Colorado rolling IRC conformity (CRS §39-22-104) incorporates IRC §1202; no addback for QSBS gain. Colorado conforms to the full IRC as updated annually, which includes the 100% QSBS exclusion.

Colorado taxes FNMA and FHLMC bond interest: Colorado starts from federal taxable income (which includes FNMA/FHLMC interest); the §39-22-104(3)(b) add-back applies only to IRC §103-excluded muni interest

“with respect to taxable years commencing on or after January 1, 2022, a tax of four and forty one-hundredths percent is imposed on the federal taxable income, as determined pursuant to section 63 of the internal revenue code, of every individual, estate, and trust. ... There shall be added to the federal taxable income: ... An amount equal to the interest income which is excluded from gross income for federal income tax purposes pursuant to section 103 (a) of the internal revenue code less amortization of premium on obligations of any state or any political subdivision thereof, other than interest income on obligations of the state of Colorado or any political subdivision thereof.”

Note: CRS §39-22-104(1.7)(c) imposes the tax on federal taxable income; the §39-22-104(3)(b) add-back reaches only interest excluded from federal gross income under IRC §103(a) (muni interest). FNMA/FHLMC interest is in federal taxable income and is not §103-excluded, so it stays taxed. Quote verbatim from the live CRS 2024 Title 39 PDF (fetched via curl).

Colorado flat income tax rate is 4.4% for TY2025 (TABOR reduction expired after TY2024)

“Colorado taxable income means federal taxable income as determined pursuant to the provisions of the internal revenue code, subject to the modifications set forth in this section. There is hereby imposed upon the Colorado taxable income of every resident a tax at the rate of four and forty-hundredths percent.”

Note: C.R.S. §39-22-104(1.7) imposes a 4.4% Colorado income tax rate for TY2025. The TABOR ratchet mechanism reduced the rate to 4.25% for TY2024 (a surplus year); TY2025 is back at 4.4% absent a new TABOR reduction. Colorado begins with federal taxable income, so the MFJ federal standard deduction shelters gains automatically.

U.S. Treasury interest exempt from Colorado income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from Colorado income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

Colorado flat income tax rate is 4.4% for TY2025 (TABOR reduction expired after TY2024)

“Colorado taxable income means federal taxable income as determined pursuant to the provisions of the internal revenue code, subject to the modifications set forth in this section. There is hereby imposed upon the Colorado taxable income of every resident a tax at the rate of four and forty-hundredths percent.”

Note: C.R.S. §39-22-104(1.7) imposes a 4.4% Colorado income tax rate for TY2025. The TABOR ratchet mechanism reduced the rate to 4.25% for TY2024 (a surplus year); TY2025 is back at 4.4% absent a new TABOR reduction. Colorado begins with federal taxable income, so the MFJ federal standard deduction shelters gains automatically.

Colorado flat income tax rate is 4.4% for TY2025 (TABOR reduction expired after TY2024)

“Colorado taxable income means federal taxable income as determined pursuant to the provisions of the internal revenue code, subject to the modifications set forth in this section. There is hereby imposed upon the Colorado taxable income of every resident a tax at the rate of four and forty-hundredths percent.”

Note: C.R.S. §39-22-104(1.7) imposes a 4.4% Colorado income tax rate for TY2025. The TABOR ratchet mechanism reduced the rate to 4.25% for TY2024 (a surplus year); TY2025 is back at 4.4% absent a new TABOR reduction. Colorado begins with federal taxable income, so the MFJ federal standard deduction shelters gains automatically.

Colorado adopted Uniform Community Property Disposition at Death Act (effective July 1, 2023)

“This article 20 shall be known and may be cited as the 'Uniform Community Property Disposition at Death Act', which is also referred to as 'this act' or 'act' within this article 20.”

Note: Colorado enacted UDCPRDA (the 2021 NCCUSL revised version) via SB 23-100, effective July 1, 2023. Protects the community property character of assets acquired in community property states when a couple moves to Colorado. URL resolves to the full C.R.S. Title 15 PDF; §§15-20-101 to 15-20-116 are within this title.

Colorado conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference

“with respect to taxable years commencing on or after January 1, 2022, a tax of four and forty one-hundredths percent is imposed on the federal taxable income, as determined pursuant to section 63 of the internal revenue code, of every individual, estate, and trust. ... Prior to the application of the rate of tax prescribed in subsection (1), (1.5), or (1.7) of this section, the federal taxable income shall be modified as provided in subsections (3) and (4) of this section.”

Note: CRS §39-22-104(1.7)(c) imposes the tax on federal taxable income with only the modifications in subsections (3) and (4), so the federal section 1212 capital-loss carryover flows through. Quote verbatim from the live CRS 2024 Title 39 PDF (fetched via curl). No published guidance addresses the imported pre-residency carryforward, so that application remains a structural inference.